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Macquarie profit up 49 per cent

Trevor Chappell

Improved global market conditions have helped investment bank Macquarie Group generate its highest profit for six years.

A big 49 per cent lift in Macquarie's annual profit in 2013/14 was accompanied by a big jump in the pay of Macquarie chief executive Nicholas Moore, whose total remuneration package rose to $13.08 million compared to $8.82 million in the prior year.

Macquarie on Friday said it had made a net profit of $1.265 billion for the 12 months to March 31, up from $851 million a year ago.

In March, Macquarie flagged that its net profit would rise by 40 to 45 per cent.

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"Global market conditions continued to improve in FY14 (the 2013/14 fiscal year), contributing to a significant increase in Macquarie Group's operating income and profit, with all of Macquarie's operating groups delivering increased net profit contributions," chief executive Nicholas Moore said.

Macquarie expects further improvements from its businesses in its 2014/15 fiscal year but anticipates its profit will be roughly in line with the 2013/14 result.

The improvements from its businesses will offset the $228 million gain from Macquarie's exit from its holding in Sydney Airport that helped lift the 2013/14 result.

Macquarie said the 2014/15 result could be better if market conditions continue to improve.

Macquarie's shares initially fell after the release of the profit results but at 1456 AEST they were 20 cents higher at $58.40.

Macquarie said that most of the bank's profit came from its offshore operations, which also benefited from a lower Australian dollar.

International income accounted for 68 per cent of the group's total income for FY14.

Income from the Americas accounted for 35 per cent of total income compared with 32 per cent from Australia.

Macquarie said this reflected favourable foreign exchange movements and growth and acquisitions in Macquarie's operations in the Americas.

It was the first time that income from the Americas had outstripped income from Macquarie's strong operations in Australia.

"There's great potential in the US, obviously, to be very, very substantial, and it will depend upon the strength of out team," Mr Moore said.